A rendering of a redevelopment project, called Brooklyn Basin, of 65 acres of property on the Oakland Estuary.

A rendering of a redevelopment project, called Brooklyn Basin, of 65 acres of property on the Oakland Estuary.

Photo: -, Oakland Harbor Partners

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(Left to right): Alexander Abrham, Ahn San, Ridwan Ali and Mustafa Abudamos cool off in the Oakland estuary, on Wednesday April 10, 2013, in front of the 5th Street peninsula, the site of the 65-acre project, in Oakland, Ca. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

(Left to right): Alexander Abrham, Ahn San, Ridwan Ali and Mustafa Abudamos cool off in the Oakland estuary, on Wednesday April 10, 2013, in front of the 5th Street peninsula, the site of the 65-acre project, ... more

Photo: Michael Macor, The Chronicle

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Longtime boat owner Jack Reynolds docks his vessel at the Fifth Avenue Marina, part of the waterfront-development site.

Longtime boat owner Jack Reynolds docks his vessel at the Fifth Avenue Marina, part of the waterfront-development site.

Photo: Michael Macor, The Chronicle

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A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential units, approximately 200,000 square feet of retail and commercial space, and a marina with up to 200 boat slips. More than 30 acres have been set aside for waterfront parks and open space.

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential units, approximately 200,000 square feet of retail and commercial space, and a marina with up to 200 boat slips. More than 30 acres have been set aside for waterfront parks and open space. less

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential ... more

Photo: -, Signature Development Group

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A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential units, approximately 200,000 square feet of retail and commercial space, and a marina with up to 200 boat slips. More than 30 acres have been set aside for waterfront parks and open space. less

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential ... more

Photo: -, Signature Development Group

Image 9 of 22

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential units, approximately 200,000 square feet of retail and commercial space, and a marina with up to 200 boat slips. More than 30 acres have been set aside for waterfront parks and open space. less

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential ... more

Photo: -, Oakland Harbor Partners

Image 10 of 22

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A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential units, approximately 200,000 square feet of retail and commercial space, and a marina with up to 200 boat slips. More than 30 acres have been set aside for waterfront parks and open space. less

A rendering of a redevelopment of 65 acres of waterfront property on the Oakland Estuary of San Francisco Bay, near Jack London Square. The project, called Brooklyn Basin, will consist of 3,100 residential ... more

Photo: -, Signature Development Group

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Boats docked at the 5th Avenue Marina on Wednesday April 10, 2013, in Oakland, Ca., the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

Boats docked at the 5th Avenue Marina on Wednesday April 10, 2013, in Oakland, Ca., the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding ... more

Photo: Michael Macor, The Chronicle

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Street sign for the 5th Avenue Marina along Embarcadero Road on Wednesday April 10, 2013, in Oakland, Ca., the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

Street sign for the 5th Avenue Marina along Embarcadero Road on Wednesday April 10, 2013, in Oakland, Ca., the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment ... more

Photo: Michael Macor, The Chronicle

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The Oakland estuary at the edge of the 5th Avenue peninsula in Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

The Oakland estuary at the edge of the 5th Avenue peninsula in Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by ... more

Photo: Michael Macor, The Chronicle

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Looking from the 9th street peninsula across the Oakland estuary to the 5th street peninsula against the skyline of Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

Looking from the 9th street peninsula across the Oakland estuary to the 5th street peninsula against the skyline of Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry ... more

Photo: Michael Macor, The Chronicle

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Looking from the 9th street peninsula across the Oakland estuary to the 5th street peninsula, the site of the 65-acre project, against the skyline of downtown Oakland, Ca., on Wednesday April 10, 2013. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

Looking from the 9th street peninsula across the Oakland estuary to the 5th street peninsula, the site of the 65-acre project, against the skyline of downtown Oakland, Ca., on Wednesday April 10, 2013. Governor ... more

Photo: Michael Macor, The Chronicle

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An industrial building and a vacant lot on the 9th Ave. peninsula along Embarcadero Road, on Wednesday April 10, 2013, the site of the 65-acre project in Oakland, Ca. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

An industrial building and a vacant lot on the 9th Ave. peninsula along Embarcadero Road, on Wednesday April 10, 2013, the site of the 65-acre project in Oakland, Ca. Governor Jerry Brown on Wednesday announced ... more

Photo: Michael Macor, The Chronicle

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Jim Johansen, (left) visits with Vortex worker Ken Vogt at the marine construction company in where he works located at the end of the 9th street peninsula along the Oakland estuary, on Wednesday April 10, 2013, the site of the 65-acre project in Oakland, Ca. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

Jim Johansen, (left) visits with Vortex worker Ken Vogt at the marine construction company in where he works located at the end of the 9th street peninsula along the Oakland estuary, on Wednesday April 10, ... more

Photo: Michael Macor, The Chronicle

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The Port of Oakland building on the 9th Ave. peninsula in Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a Chinese holding group to transform 65-acres of waterfront property adjacent to Jack London Square into a community space, parks and restored wetlands The project is expected to break ground in 2014. less

The Port of Oakland building on the 9th Ave. peninsula in Oakland, Ca. on Wednesday April 10, 2013, the site of the 65-acre project. Governor Jerry Brown on Wednesday announced a 1.5 billion investment by a ... more

Photo: Michael Macor, The Chronicle

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Brown unveils Oakland waterfront deal

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A China-based investor has agreed to help pay for a $1.5 billion development in Oakland to transform 65 acres of industrial waterfront adjacent to Jack London Square to a district of shops, parkland and homes featuring high-rises that will reshape the city's skyline.

The Brooklyn Basin deal, announced Wednesday by Gov. Jerry Brown in Beijing during his trade mission, will create 10,000 short- and long-term jobs, 3,100 housing units, 200,000 square feet of retail and commercial space, and 30 acres of parks that include wetlands restoration.

The project, described by city officials as "shovel ready," already has city approval and a certified environmental impact report, and groundbreaking is expected next year. Plans began 12 years ago when Brown was Oakland's mayor, but stalled because of lack of financing.

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The governor is in China to open a California trade and investment office and to create a task force to increase investment and trade between the state and China. The news about Brooklyn Basin was the first major announcement of his trip.

"This massive influx of Chinese investment will put thousands of Californians to work and dramatically improve Oakland's waterfront," Brown, a longtime Oakland resident, said in a statement. "This project is just one example of what's possible when business leaders in two of the world's most dynamic regions connect."

Not a pretty place

The property is south of Jack London Square and west of Interstate 880 - an eyesore that includes a former shipping terminal, storage facilities, and a sand and gravel business. As plans for the development, formerly known as "Oak to Ninth," languished, Signature offered the site as a possible home for the Lawrence Berkeley Lab - which chose to build in Richmond. The city, meanwhile, proposed building a baseball stadium for the Athletics nearby.

Signature had been shopping the site to various investors when Quan introduced the two groups around the beginning of the year, said Paul Nieto, a senior vice president at Signature. Quan has known one of the investor team's members, Peking University Professor Bruce Quan, since the two were at UC Berkeley. They are not related.

On Tuesday, they had a signed agreement, though the terms were not disclosed. Nieto would only say that Zarsion's contribution was "substantial" enough to warrant them being "co-developers."

Market affects plans

In the first of the project's four phases, which involves building 1,300 housing units, Zarsion will contribute $28 million, Nieto said. Construction next year will mostly create infrastructure, including roads, electricity, sewer and water lines, and other services. The first buildings will go up in 2015. How quickly the project will be built will be determined by the market, Nieto said, but he estimated it will be complete by 2021.

Once finished, trails will tie the parks to the Bay Trail as well as Lake Merritt. The developer has also signed agreements with the city about local jobs, 465 affordable housing units, apprenticeships and other community benefits.

David Kakishiba, who fought for the community benefits as the executive director of the East Bay Asian Youth Center, said he believes the project will be a boon to the surrounding neighborhood and the city as a whole.

Mixed reactions

"It's a pleasant surprise to hear this," said Kakishiba, who is also president of the Oakland school board. "We weren't sure this project would ever happen because of the state of the economy."

Not all Oaklanders were happy to hear about the deal.

Naomi Schiff, an Oakland Heritage Alliance board member, derided Brooklyn Basin as "a suburban project on the edge of the city with not very good access connecting it to schools, stores and the rest of the world."

The major waterfront development is one of several planned in the Bay Area. Lennar Corp. is planning to build 10,500 homes on 700-plus acres in San Francisco's Hunters Point. The developer has also been looking for Chinese investment to back the project.

Quan said she has made many introductions to Chinese investors since becoming mayor. The introduction to Bruce Quan, a childhood friend of her husband, Floyd Huen, was just the first to bear fruit.